Territorial vs worldwide taxation

Territorial vs worldwide taxation — the two designs: a territorial system taxes only income arising in the country (Singapore, HK, broadly); a worldwide system taxes residents on income wherever earned. The Philippines taxes resident citizens on worldwide income — which is the single fact that deflates most offshore pitches aimed at Filipinos: the Dubai account’s zero rate is worth nothing while you live in Makati. Only genuine relocation changes the applicable system, and that’s a life decision wearing a tax costume.

First used in: 5.6 · Going global, legally